At Heritage, we believe that education is an important part of the estate planning process. On this blog we will be sharing some information, articles, and opinions that you may find helpful along your way.

02/03/2015

"So don't give away your money. There are other things you can do ahead of time. Talk to an elder law attorney to make sure you are maximizing your dollars, that you can still give your kids some kind of inheritance and still go into a skilled nursing home on Medicaid."

A recent article in Hometown Life article, titled "Plan ahead to assure secure future for aging parents," stressed the importance of planning ahead for elderly parents are or may become physically or mentally unable to care for themselves. This process should include two important documents: a power of attorney—which can give an adult child legal authority to act on behalf of elderly parents with financial matters—and a patient advocate designation—to help them in medical matters. By starting early, children and their parents can work together to create these documents.

The article also answers questions on a few other topics:

What about putting your name on your parents' bank accounts?

Children should not be joint owners, because you’ll be subjecting your parents' assets to all of your liabilities, causing issues for future benefits. The government is more likely to scrutinize a joint account if the parent applies for Medicaid when transitioning to a skilled nursing facility. Instead, a signed financial power of attorney allows an adult child to pay bills, sign checks, and help the parent with other financial matters—without the need for joint bank accounts.

Who pays when an elderly parent, on Medicare, needs rehab in a skilled nursing center?

Medicare may pay 100 percent of the first 20 days. After that, Medicare may pay 80 percent, and supplemental insurance may pay the other 20 percent of the bill. There is a 100-day Medicare benefit, but not everyone qualifies. You also need to have a 30-day wellness period outside the hospital or a skilled nursing center for that benefit to reset. For example, if the parent leaves the facility on Day 20—but returns the next week—they start where they left off at Day 21 because they didn't have a 30-day wellness period.

Should I give any money away if considering entering a skilled nursing home (with Medicaid)?

No, Medicaid will examine the past five years of your finances when you apply for coverage. If you have given money away, you could be severely penalized with long periods of ineligibility and you may not get Medicaid even if you have zero dollars.

To get more answers to your estate planning questions, visit Heritage’s Frequently Asked Questions page or attend a free workshop.

05/28/2014

How do I know what kind of caregiver my family member needs? How do I go about finding a home caregiver? What if I prefer to hire someone myself? Where can I find more information about home caregiving?

Choosing care for your elderly loved one can be challenging. You want to make sure their needs are met and that the care is affordable. This is no easy task with rising health care costs.

When it comes to funding long-term care options, why is home health care such an attractive alternative? Because home care providers don’t maintain large facilities and generally have fewer regulations to follow, according to a recent New York Timesarticle,"Tips for Choosing Care for an Aging or Ailing Family Member." In short, it is less expensive (and you get to remain in your own home). According to the article, there is currently an ample supply of workers to serve as at-home caregivers.

However, these rates and the supply may change down the road. As baby boomers grow older, the demand for caregivers will most likely increase. Most of those baby boomers will want to stay in their own homes as long as they can.

The cost of hiring a caregiver may also be impacted by new regulations that go into effect in 2015. These regulations extend federal minimum wage and overtime protection to many home care workers.

Remember that extended care at home is typically not covered by Medicare. So this cost would be out of pocket, unless you have long-term care insurance or qualify for Medicaid.